All Forum Posts by: Ryan Groene

Just the pure economics of starting/developing a MHP is not beneficial for most people as your hold period will have to be several years without any return...so unless this is okay with you and your okay with developing the land, bringing in roads, water/sewer, electric, cable/internet, developing the pads, and bringing in the homes, your going to be in the whole at least 20k-50k(includes home price) per pad before you even get this up and running to full or close to full occupancy.    If you can do it, all the more power to you and hopefully there is demand...

But you stating that they are developing MHP's in that area....i would do more digging and see if they actually are doing this....and if so..i probably wouldn't do that i would just wait to see how those parks fair and work out before i went and developed one...because once there is so much supply on the market, eventually it will cross over and there won't be any more demand for that much supply, therefor you will have concessions starting to happen in the market and vacancies go up...happens with apartments all the time at times like this.

Also most of the time there isn't enough demand in those areas that parks are being built because they are just in the middle of nowhere where people don't want to live.

Last year alone there was less than 10 MHP's built nationwide....if it was beneficial to build one all big investors would be doing it....most of the REITS are just adding onto existing parks because its much cheaper and they know there is demand in those areas

reach out for more questions if you have any

It is really all dependent upon the city that you are in and where you are in the country.  Ive heard tap fess of a 10k or so, and ive heard crazy stories of a city just coming in and putting in water/sewer to get for pretty cheap.

Just depends on the city...give them a call and they may be able to get you a quote

mobilehomeparkstore.com, look at craigslist like @Belinda Lopez said...direct mailers/cold call to owners, wholesalers in the business. reach out to brokers

Agreed...you can just say your another park owner, or you can act like a potential tenant, or you can act like an appraiser doing market research, 

Agreed, look to get above 5 years in term length of when the loan is due in full.  look for as long as possible on that side of things.

check out @John Fedro articles and the forum

Whats the lot rent?  Do you own all the homes?  what are the utilities set up?  do tenants or the park pay?  Whats your exit strategy?  Are you self managing?

First congrats on tying a park up, but this is a really small parks so the numbers have to make sense for you as an investor more than ever becuase there is less room for error potentially...just keep that in mind.

For me, this would have to be public water/sewer and be billed directly to the tenants...also they units would have to be all tenant owned and would basically have to either get zero down owner financing or really small cash deal.  

I have looked at a deal like this recently that was really close to me that i could self manage, also came w/ 2 single family homes and could have been a good little deal.  But there is a very limited exit strategy if you go to sell...location is basically everything for a park this small or you need to plan to buy other properties as well.

MHP's this small will experience a higher expense ratio that the typical 30%-40% thrown around out there....

Make sure to do your diligence, get a phase 1 done at the very least, and walk thru every home is they are POH's, and also make sure you can afford to replace something if it goes wrong...electical, HVAC in a home,etc.

in order to get a better picture, i would need lot rent, what type of utility set up, how many Park owned homes, 

also keep in mind their numbers are not always worthless, but make sure you do your own pro forma

your best bet is check with a lawyer or a company that specializes in that...honestly im not sure if its a like or kind assets since your going from residential to commercial

cap rates don't always tell all....technically you could buy something with no cap rate if its losing money and its a turnaround park.   

the 10% cap is an old general rule that people based their initial quick back of the envelope evaluation to see if its worth pursuing more without spending any more time on it.

but yes it could realistic to see that depending on a number of variables